Qualcomm probes possible Intel acquisition

Qualcomm recently approached Intel about a possible acquisition. It’s unclear whether Intel has initiated discussions with Qualcomm or what the terms of the deal would be, according to a person familiar with the matter. The Wall Street Journal was first to report the news, and Intel shares initially jumped, then closed up about 3%, while Qualcomm shares fell about 3% at the close. If the deal goes through, it would be one of the largest tech mergers ever. Intel has a market cap of more than $90 billion.

Once the world’s largest chipmaker, Intel has been on a downward spiral for years that has accelerated in 2024. The stock posted its biggest daily decline in more than 50 years in August after the company reported disappointing results. Intel’s shares have fallen 53% this year as investors raise concerns about the company’s expensive plans to produce and design chips. Qualcomm and Intel compete in several markets, including chips for PCs and laptops. However, Qualcomm, unlike Intel, does not make its own chips, instead relying on companies such as Taiwan Semiconductor Manufacturing Company and Samsung.

Qualcomm generates less revenue than Intel. It reported $35.8 billion in sales for fiscal 2023, compared to Intel’s $54.2 billion in the same period. A potential deal would be complicated by antitrust and national security concerns. Both Intel and Qualcomm operate in China, and both have had deals blocked by Chinese antitrust regulators. Intel was unsuccessful in its bid to acquire Tower Semiconductor, and Qualcomm was unsuccessful in its bid to acquire NXP Semiconductor.